Buy your Business Premises with a SIPP 2

Back in 2002 I created a SIPP syndicate with 10 colleagues and friends, we pooled our pension pots and created self invested pension plans with James Hay http://www.jameshay.co.uk as pension trustees.

Property yeilds are 8% to 10%, basically meaning the rent = 10% of the purchase price. Thats a much better return than most stock market invested pensions.

SIPPs can borrow money too, up to 50% of your fund value, so if you had £100k you could borrow an extra £50k, as the cost of borrowing is less than the yeild you will make a return on the borrowing and your tenant will repay the loan over the life of their lease.

The tenant will have a Full Repairing Insuring lease so they only issue you could have is with void periods.

You can also buy your own business premises using a SIPP.

steve@bicknells.net